Do you have house to let out? It can generate monthly income for you. Strategize it correctly to maximize profits. Even if you are one of the lucky people, whose properties are in high demand, you will need to strategize to achieve best possible rental income.

For most property owners, the way to rent is to advertise in the local media and wait for the tenant to appear. They then look at the best tenant among the applicants and rent it to him or her. Some property owners take the chance to meet the tenants.

The world is changing constantly. New rules constantly dictate what we must do to be secure. What is the worst thing that can happen to you? You could be looking at ugly surprises like sitting in jail for being negligent. Loss of revenue will be the least of your problems then I guess.

Following five top tips will ensure you get a profitable rental income, always.

Identify the highest rental you can achieve through the house to let. Most people just rent at the last price that the property was rented. This is one way of going about it. Work out the highest rental you can achieve.

It might take a bit of work to find out this highest value. Remember it is for a good cause, it is your income. A simple map to finding highest value is:

• Find out the prevailing rent of similar house to let in the area.
• Consult the highest rent possible with the property agent.
• Study the local newspapers, to see the trend in prices of the house to let.

Arrive at your base price. Compare the unique features of your house to let. What are you offering more? Small things matter. It can be as small as a built in water heater or an air conditioner. It can also be a luxury feature like having an extra balcony on your house to let.

A respectful way to calculate the rental is based on square feet of total space. Price the property so that you at the higher end of the fair price. Break down the rental. Have a basic rental and always stress that number. Add on prices for facilities of your house to let.

Talk to every tenant in detail. A basic introduction and smile will not cut it. Understand who they are. Use the conversation to have more information.

• Identity. Are they who they say they are? They may be the competition, checking out what your asking price of your house to let. Remember to quote the base price we worked out. They may be a person with unhealthy intention. Asking for visiting card is always sensible. In case of a student, ask for the identity card. Once you have been shown the identity, try to confirm it with other questions to ensure that checks out.
• Safety: Explain to the potential tenants that you will need a copy of their official identity and that you will comply with the rules and regulations and not make any shortcuts. Stress that everyone in the area is safety conscious. Adhering to rules like this keeps everyone in the area safe.
• Quick Buck: You will certainly be offered bribes, with various motives. Bribes may be emotional. People will plead their personal cases telling why you should just rent the property and they will submit the documents later. They may offer you extra money. Beware of such bribes.

Doing a credit check is always a bright idea. Doing a credit check is easy. You can do it thru a service provider like Equifax or directly with the equivalent of a credit check authority. In Malaysia, you can ask the person to get his credit report from Credit Bureau, Bank Negara Malaysia. If you do not know who the relevant authority is, do an Internet search. Enter the terms “Credit check” and the name of your country. Watch for the topmost links to government offices. The credit check is an extremely organized sector. You are not expected to find any difficulty, obtaining the report.

Credit check does multiple things for you:

• It confirms the identity of the person.
• It gives you an idea about how solvent your tenant is.

This information is of paramount importance. A lot of countries require the landlords to know the tenant. If the tenant is connected to crimes, the landlord may be held answerable. He could be charged with harboring a criminal. You do not want to be in such situations. This move by governments, across the world, is to ensure that rogue elements do not find sanctuaries.

Knowing that your client is solvent means you will get your rent on time and that the tenant will not move out for financial reasons. If you have a decent tenant, you want to keep him. Not only does it reduce the maintenance hassle, you get the yearly increase in rent and assured high income.

There is a fundamental difference between a lease and a rental agreement. A lease is shorter term and needs to be renewed every year. Although some owners see this as a hassle, it is the correct thing.

• You get higher rental when you renew the lease. A 10% rental increase is normal and 15% quite likely.
• You will know when the tenant starts reaching his rent limit. If he agrees to the 10% increase, you can be relaxed. If he fights for the 10% and threatens to quit, you may consider a new tenant for the next year. As an owner, you do not want your property vacant even for a day.

House to let is a reasonable proposal. It gives you return on your investment. It is in your best interest, to have a high and stable monthly income. You should ensure it does not turn into a nightmare. The tips are some of the ways how you can ensure stable and high rental income. Protect and work for your property investment so that it may serve you well.